Economic Buzz: Eurozone Manufacturing PMI At 46.4 In October

2 Nov 2022 , 04:24 PM

The eurozone manufacturing sector slid further into contraction territory at the start of the fourth quarter as output and new orders fell at rates rarely surpassed across the 25 years of PMI data collection. Export demand also sank sharply as geopolitical uncertainty, high inflation and weaker economic conditions around the world weighed on foreign client spending. With output requirements rapidly diminishing, eurozone manufacturers reduced their purchases of inputs to the quickest extent since May 2020. A further easing of supply chain pressures was also recorded as more capacity was freed up at suppliers. Meanwhile, having accelerated slightly in September, price pressures subsided at the start of the fourth quarter. Nevertheless, output charge and input cost inflation rates remained historically elevated. The S&P Global Eurozone Manufacturing PMI? recorded in sub-50.0 territory for a fourth month in a row in October, signaling a sustained downturn in manufacturing sector conditions. At 46.4, the headline index fell from 48.4 in September to its lowest level since May 2020. Powered by Commodity Insights